Noble intentions, but questions remain

The Budget's goals are ambitious, but allocations to health and education fall short of its Viksit Bharat vision

- M GOVINDA RAO

The Budget speeches often underline many honourable intentions, but closer examination raises many questions. In this Budget too, Finance Minister Nirmala Sitharaman has put forward many noble intentions, such as accelerating growth, securing inclusivity, galvanising private investment, and increasing the spending power of the middle class. The question is to what extent these intentions are translated into policy actions in the Budget.

This is the eighth successive Budget presented by Ms Sitharaman, and admittedly, over the years, her Budgets have acquired some important desirable features. The first is the realism of the Budget, particularly in revenue estimates. In this Budget, the nominal growth of the economy is projected at 10.1 per cent over the revised estimate of the current year, and the gross tax revenue is estimated to grow at 10.8 per cent. This works out to a buoyancy of 1.06, which is eminently achievable.

With the increase in revenue expenditure contained at 6.7 per cent, it should be possible to achieve the budgeted revenue, fiscal, and primary deficit targets. Realistic tax revenue projections do not place unrealistic targets on tax administrators and spare the taxpayers from possible pressures.